RE: illegal to descriminate against small business in a capitalist society
This is typical kind of anti-competitive law which undermines the small or mainly sole traders.
What about multi-nationals who filter billions in unpaid tax away!
Anything that hampers with paperwork and bureacracy or stops small business growing, eventually into large corporations, is seriously damaging to the Capitalist system.
Large companies tend to fade and fold eventually as part of the business cycle to be replaced by new companies grown from small traders.
If your large businesses keep "hanging around" year after year you know you have a monopolistic system where competion is cleverly and subtley crushed (often with colusion of The State). For example banking.
Conditions for all business, great or small should be the same, and this incudes tax and tax evasion regulation.